Crypto analyst Merlijn has challenged comments made by Brad Garlinghouse about Strategy, arguing that Ripple and Strategy follow similar funding models.
According to Merlijn, Garlinghouse should not be criticizing Michael Saylor because Ripple also generates funding by selling XRP from escrow on a monthly basis.
As discussions continue around Strategy’s recent Bitcoin activity, Merlijn responded directly to Garlinghouse’s remarks and pointed out what he sees as a contradiction. He argued that both Ripple and Strategy rely on market based funding methods, making Garlinghouse’s criticism difficult to justify.
Recently, Garlinghouse said in an interview with CNBC that Strategy’s Bitcoin model is putting pressure on the crypto market. Strategy had paused its consistent Bitcoin buying streak and sold part of its holdings, a move that caused significant reaction across the market because the company has played a major role in driving Bitcoin demand.
Although Strategy later resumed buying Bitcoin, the sale attracted criticism from several prominent figures in crypto. Garlinghouse argued that Saylor’s approach lacks a sustainable long term strategy built around Bitcoin’s core strengths.
He explained that Strategy’s buying model helped fuel enthusiasm during Bitcoin’s rally, but the same model is now creating additional downside pressure as prices fall.
Garlinghouse also pointed to Strategy’s leveraged acquisition model involving its STRC stock. With the stock trading roughly 25 percent below its $100 par value, he believes the risks of this strategy are becoming more visible during market corrections. In his view, Strategy should prioritize long term value creation and utility instead of relying heavily on financial engineering.
Merlijn acknowledged that Garlinghouse may be correct about STRC facing challenges. However, he maintained that the Ripple CEO has little ground to criticize Saylor because Ripple also depends on selling XRP to fund operations.
He described Strategy and Ripple as two major players using similar market dependent funding models. Since both approaches can create selling pressure on their respective assets, Merlijn sees Garlinghouse’s comments as inconsistent.
He also noted the irony in Garlinghouse criticizing Strategy over a single Bitcoin sale while Ripple regularly sells XRP and does not promote a strict hold forever mindset around the token.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
